1. What’s hot & what’s not Key issues in current procurement practice

2. Background • Improvements in Government procurement identified as an initiative at 2009 Job Summit • Reform targets transformation of procurement policy and practice • Opportunity to enhance participation by NZ businesses • Need to obtain supplier feedback on doing business with government

3. Government Objectives • Better access for NZ businesses to govt opportunities • Less red tape • A standardised approach by agencies • Better supplier management • Increased capability & scale of industries supplying govt • More projects delivered to time and budget

4. Perspectives & Perceptions • Important to gain perspectives from business community • Need to gain more specific information about supplier concerns • Aim to check perceptions against reality

5. Approach • Selection of NZ businesses & representative bodies invited to participate in survey • Selection of government agencies interviewed • Review of tenders listed on GETS

6. Plan • Confidentiality agreed - identities protected • Free and frank answers • Based on direct experience and perceptions • Results analysed to identify emerging themes • Research helps shape the scope of the reform programme

7. Business community • Businesses who contract with government or would like to • Mix of suppliers and industry bodies from around NZ • Range included: • a. sole traders to multinationals • b. suppliers of both products & services • c. mix of manufacturers, resellers, prime contractors, sub- contractors and service delivery agents

8. Government Sector • Agencies from across government sector • Range included: • a. policy & operations • b. small & large

9. What we heard • Common themes emerged • Focus was more on process

10. What we heard (cont) • Variety of contracting documents • Short tender timeframes • Variable forward notice of opportunities • Processes sometimes unclear • Difficulty balancing innovation against risk

11. What we heard (cont) • Supplier debriefing • Opportunities to build business relationships • Use of alternative procurement methods • Procurers’ skills • Suppliers’ skills • Reluctance to complain

12. Focus for development • Introduce standard documentation • Improve agency & supplier procurement capability • Improve procurement practice • Adopt strategic procurement approaches • Enhance approaches to risk management • Enable better business engagement • Improve contract management

13. Projects & Prioritisation • Criteria: Ease of Implementation • MED resources: $ • Acceptability to business • Acceptability to agencies • Resource implications for business • Resource implications for agencies • Also considered if there were FTA implications • Criteria: Benefit to Business • Delivering better value for govt • Better access for business • Less red tape • Standardised approach • Better supplier management • Increased business capability • More projects delivered on time & budget • Overall benefit to businesses • Overall benefit to agencies

14. Initiatives - Year 1 • Procurement Capability • Standard conditions of contract • Standard tools & templates • Practice Guidance Notes

15. Initiatives – Year 1 (cont) • Forward planning by central agencies • Suppliers Guides to doing business with government • Review & consolidate procurement policies

16. What’s hot & what’s not Question & Answer Session